Beijing Auto Plotting to Buy Volvo
Beijing Auto are determined to get hold of foreign automakers one way or another via a buyout of foreign owned automakers.
In late May their chance to buy Opel, GM’s European subsidery, failed at the last minute. Beijing Auto Works (BAW) are expected to send executives to tour the Ford owned Sweedish automaker and review their accounts prior to making a bid.
Geely are the current forefront winners to take over Volvo according to our sources, but a late bid by Beijing Auto Works may up the bidding war. Geely first visited Volvo in April 2008, and placed their bid early on.
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Not only is BAIC intent on acquiring a foreign brand but it has also shown strong interest in domestic makers like Changfeng, Soueast and Lifan. Perhaps it was the success of its joint venture with Hyundai that has given it the financial boost that makes such overtures possible.
But does BAIC have the inter-cultural skills to make a foreign acquisition work? It obviously had its share of troubles trying to make a success of its venture with AMC, and later with Chrysler.